gridlock. putting aside florida, where the votes were still being counted, the president dominated the election map. victory across the battleground states except north carolina. obama backers celebrated his win in swing state virginia. harry reid, whose senate democratic majority got bigger, demanded the majority house republicans cut deals now on taxes and spending. >> american people want us to work together. republicans want us to work together. >> reporter: and house speaker john boehner opened the door to higher taxes. >> good evening, everyone. for the purposes of forging a bipartisan agreement that begins to solve the problem, we're willing to accept new revenue under the right conditions. >> reporter: conceding his loss, mitt romney called for compromise. >> at a time like this, we can't risk partisan bickering and political posturing. our leaders have to reach across the aisle to do the people's work. >> reporter: how did the people of america reject romney? one reason is our population has

changed. a smaller share of whites voted, down to 72% of the total. more minorities voting, more young people. changes that favor democrats like barack obama. he reached out last night to romney backers. >> and whether i earned your vote or not, i have listened to you. i have learned from you. >> reporter: some republicans say they better learn from an election that gave barack obama four more years. bipartisanship will get an immediate test. the dreaded fiscal cliff, automatic across-the-board tax hikes, and deep spending cuts are just seven weeks away. live from chicago, i'm steve handelsman, nbc bay area news. >> okay, steve, thank you, from a very chilly chicago. it is very common on the day for the markets to slide, but on this day after, it was a tumble on wall street, and it involves one of the bay area's most notable companies. like steve mentioned, we're

going to be hearing a lot of that fiscal cliff term. scott budman joins us. where are we headed here? >> reporter: a lot of direction, raj. some local, some overseas. you mentioned apple. here is what a lot of people all over the country are talk about tonight. wall street worried what politicians are indeed calling the fiscal cliff. which comes from a previous budget deal. basically, what this means is by the end of the year, unless there is a new deal to decrease the country's deficit, two things will happen. one, massive government spending cuts kick in. literally hundreds of billions of dollars worth of cuts. and two, a tax increase. many analysts say this could plunge our economy back into a recession and lead to a sell-off in the stock market because of investors losing confidence in our government's ability to balance the budget. now the worry on this has already started, adding to the fiscal cliff concerns. europe's economy is struggling again. and here at home, apple continues to tumble. all of this leading to a 300-point drop in the dow, and a 2.5% fall on the nasdaq.

cupertino-based apple down more than $22. it is now trading at a five-month low. if there is a silver lining to any of today's numbers, it's that the price of oil continues to fall. it's now at its lowest level since the summer because as the european economy suffers, the expectation is that less oil will be used there. we'll see if that comes back to affect our gas prices across the pond in the weeks to come. janelle? >> that would be welcome relief at the pump. thank you so much, scott. it was one of the ugliest local battles in recent history. the seat for one san jose city council district, which also became the most expensive in that race's history. san jose voters also approved an increase in the minimum wage. stephanie trong is live at san jose city hall with the wrap-up. >> reporter: the mayor got who he wanted in the two races for city council, rose herrera retaining her district 8 seat, and johnny khamis taking district 10. what that means is no power shift. the vote breakdown will remain

the same. so as will for the government employee unions, but they did pull out a win in the passing of measure d. here at fourth street pizza in downtown san jose, the minimum wage increase from $8 to $10 will likely be paid for by you the customer. >> everybody is going to be paying more for food, for, you know, prices are going to jump. you got other cities like santa clara, campbell, the minimum wage there is still $8. it's kind of unfair advantage for them. >> i hate that thought of somebody losing their job, especially a minimum wage job that is really important to their families. but the voters get the last word. they have spoken. >> reporter: measure d supporters are ecstatic, especially since they were outspent in campaigning by their opponents, who poured in more than $400,000. >> really exciting to see people in this community saying that if you work hard and play by the rules, you ought to make a fair wage. >> reporter: fair pay and benefits, that's what unions like the san jose police officers association say they're asking for as they fight the pension reform measure passed by nearly 70% of voters in june.

the unions poured hundreds of thousands of dollars into ousting district 8 incumbent rose herera. >> we thought jimmy nguyen really had grasp of the law enforcement end of things. and unfortunately the voters went a different way. >> i have less confidence in councilmember herera just because we've had a chance to see her leadership in act. but i think johnny khamis is a new day. >> he says the race cost three times more than any other city council race in san jose, the most expensive and one of the nastiest. >> it was one of the ugliest, meanest, most deceptive campaigns ever run against a councilmember. >> reporter: there have been half a dozen lawsuits already filed by the unions related to pension reform, tying up city time and money. and as one election wraps up, well, the unions are already banking their hopes on something else that will shift their momentum. they're hoping coming up in the near future. that's coming up tonight at 6:00. live at san jose city hall, stephanie trong, nbc bay area

news. >> okay, stephanie, thank you. parents, students and governor brown very happy with the final results. this morning it was official. prop 30 was passed, and almost immediately, the csu system announced it will start issuing refund checks to its students. the much hyped prop 30 was passed with 54% of the vote. it will raise income taxes on californians making more than $250,000 a year. it will also hike the sales tax by a quarter cent. the sales tax takes effect in january, and the income tax hike is retroactive to the beginning of this year. governor brown, who campaigned tirelessly considers the vote a win, not just for himself, but for the state. he says the new money will cover $6 billion in education cuts that were made in recent years. >> the good news is the state has been reaching into the pocket of school districts to take money out because it couldn't pay its bills. that day is over. we are now living within our means because of the cuts and because of prop 30.

>> the governor adds that rating services such as standard & poor's are already noting california's new income and viewing its financial outlook favorably. long-time east bay congressman pete stark conceded his race for reelection today to a political newcomer and fellow democrat almost 50 years younger than him. 80-year-old stark lost to dublin city councilman and prosecutor eric swalwell who is just 31 years old. swalwell says he will help end gridlock in washington. he says it won't be easy, but his youth and optimism will hill. >> the 113th congress will be the youngest, most inexperienced congress in the history of congress. and i see that not as a liability, but as an opportunity. >> swalwell turns 32 next week and will be the second youngest member after 31-year-old aaron schock of illinois. congressman stark, who was first elected in 1972, did not grant any interviews today and left a campaign event last night

without talking to any reporters. he did however issue a statement that reads it has been my honor to serve the female of the east bay for the last 40 years. i congratulate mr. swalwell on his victory. i am happy to be of assistance in the future. this new congress in washington will have a feminine touch more than ever. 20 women snores, which is the most in the u.s. history. there are currently 17. three new women were elected in five states. and all six democratic women up for reelection won their races. that includes san francisco's dianne feinstein, who cruised to a fourth term. today in the city that familiar theme that we're hearing throughout this day, she called for an end to the gridlock in washington. the 79-year-old feinstein easily defeated danville resident elizabeth emkin. we have complete coverage. nbcbayarea.com, you can check out video from last night, including all of president obama's victory speech. >> okay, things are changing. we've already seen a dramatic

drop in the temperatures. >> hey there, guys. that dramatic drop in temperatures again arriving this afternoon. about a 20 to 30-degree plummet, especially for places like gilroy which had the hottest temperatures the last two days. yesterday 92. down to 66 at the current hour. here comes the next storm system. it will push across the northwest in northern california nor tomorrow. this will introduce rain, also some wind and even some extremely low sierra snow. we're going to detail the timing on all of this, and what it means even for your weekend, coming up in just a few minutes. >> okay, thanks, jeff. and it's a one-two storm punch for the northeast, where people are still reeling from hurricane sandy. from flooding to snow, a live report after this break. plus -- >> i'm kimberly tere live in the east bay where a new outlet mall has opened just in time for the holiday shopping season. more on the high-end stores with deep discounts, coming up in a live report.

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well, the timing could not be worse. a new winter storm is hammering the east coast this evening. it's already canceled 46 flights out of here in sfo. but more noticeably, it's hurting many of the same people who were hit by last week's superstorm. nbc bay area's jay gray joins us this evening from new jersey. jay we see the snow right in front of you. what now for this region that is already crippled? >> reporter: raj, you're absolutely right. you can see the snow. what you can't get as good a view of is it's mixed with rain. it's a mess, and it's a mess that is playing out in areas across new jersey and new york. tonight it will continue for 10 to 12 hours. and like you talked about, happening at the worst possible time, just over a week after sandy. the damage and difficulty still stretch for miles. >> we just got hit. everybody got hit with sandy. >> reporter: and now millions along the east coast must deal with a second storm. >> it's expected to arrive with heavy winds and rains as we go

further into the day today, through tonight and into tomorrow morning. >> reporter: a harsh nor'easter has already started dumping heavy snows in central connecticut. front loaders and plows have been moved into place. piles of salt and sand are at the ready. but there is a difficulty in trying to protect an area already ravaged by sandy. hundreds of thousands are still without power. tarps cover roofs where they can. in other places, homes and communities have been wiped away. and this latest round of rough weather will likely set back the recovery here. >> i can see us actually moving backwards, people who have gotten power, losing power again. >> reporter: already an overwhelming task if it can, the cleanup here will become even more difficult now. >> we have a lot of brush still in the street. it's going to make a slow go of it. if snow and ice gets mixed with the sticks that are out there, it's hard to chip it. >> reporter: the winter storm is already chipping away at travel

flights that have been delayed and canceled, a situation that like the condition is only expected to get worse. yeah, the temperature dropping, the wind picking up. and, again, we're going to see these intense conditions for the next 10 to 12 hours, which means that cleanup and recovery everyone had really started to work at in this region is going to be pushed back until at least this weekend that is the latest live. here in trenton, new jersey, i'm jay gray, nbc bay area news. >> okay, jay. thank you. coming to us from that snowstorm. here in the bay area now, they emerged after a closed door four-hour meeting. and they said sorry. the moraga school district is apologizing for a legal claim which blamed a sexual abuse victim for being partially responsible for her attacks. that accusation was directed at 30-year-old kristen kunane who said she was sexual abused by two teachers at moraga school back in the 1990s. the allegation by the school district was in court papers

filed in connection with her lawsuit. the district has now withdrawn that court document. in a statement released today, the superintendent said, quote, the governing board and its attorneys apologize to ms. cunnane for any anxiety or distress for the inclusion of this response. it's higher fashion and maybe some lower money here in terms of costs. that's where we find nbc bay area's kimberly tere, who joins us with this new shopping center and the economic impact of this retail attraction. kimberly? >> reporter: raj, the official grand opening is tomorrow at 10:00 a.m. but a lot of the flagship stores, including bloomingdale's here are already open. the others are all busy preparing for the onslaught of customers. at le crsuet, the managers are putting their final touches at the paragon outlets, which the

job market, this is a blessing for livermore. i participated in the job fair, and there were literally thousands of people out there trying to get a job. so this is going to be wonderful for the economy and for the town of livermore, absolutely. >> reporter: according to paragon outlets, the mall created 2,000 permanent positions. there are also hundreds of trades people working on construction, making sure it's ready for customers. the 543,000-square-foot center has 130 stores packed with high-end retailers. 7 of mankind jeans, bloomingdale's, michael kors. >> you come out here to do a wonderful wine tasting, to have a lunch at a vineyard, to shop now. something that you didn't have quite as accessible before we came. i think it really just helps to establish livermore as a wonderful place to spend the day, the weekend, a vacation. >> this outlet mall is nearly a decade in the making, and shoppers say they're ready to start spending.

>> we've been waiting for them for a year now. all my girlfriends are getting ready to line up to come visit. maybe tomorrow. i don't know. >> it's amazing. we were just looking at the index over there of the stores. so anxious to be able to go and check it out. >> we've been growing so fast out here. it's a neat bonus for people that are traveling this way on the corridor. traffic stops right out there. might as well get off and shop. >> reporter: again, the big stores, neiman-marcus, off saks fifth avenue and bloomingdales are all open right now. but we're hearing that the wait in line could be as long as two hours. everyone excited to get inside. tomorrow's grand opening will feature some major discounts and some retailers are offering special gifts. live in livermore, kimberly tere, nbc bay area news. >> it's like black friday in november. early november. >> there is a two-hour wait today. >> yes. >> and the grand opening is tomorrow. >> so it could be even longer. but you could get some big

discounts. >> i saw a hugo boss store in there. >> do we need to bring our umbrella or can we still hold off a bit? >> you're going to need the umbrella. maybe you don't bring it and you get an excuse to buy a new one. you never know. all right. temperatures are dropping. you probably had the shorts, the flip notes out, maybe even one last dip in the pool the past couple of days. but now temperature have plummeted about 10 to 20 degrees. los gatos 79 to 66. san jose, how about this, from 80 to 66 today. now in los gatos, here is the other thing. 76 today. definitely felt cooler. but by tomorrow, we're going to go to 59 degrees. and your average high is 71. so from way above, record-setting heat to well below average here over the next 36 hours. not only that, but the latest cold air and also our approaching storm system has already prompted a winter weather advisory up across the sierra. the unique thing about this is how low that snow is going to go. down here to pollock pines, near folsom, also grass valley.

if you're traveling anywhere this way, get ready for some snow. near about 2500 feet. they could see 4 to 5 inches. it is a lot colder at this hour. plenty of 50s on the weather board now. let's take you outside live to the hdnet work. clouded in here as the onshore flow and the marine layer has moved well inland. san francisco also seeing a very gloomy day. not much in the way of sunshine. but for those of you in the interior valleys, we did get in on that sun this afternoon. now the next 48 hours, what we have happening is our next storm system spiraling out here. you can see a little spinning right in that location. it's going to move here to the south. it will take a dryer storm track. we're expecting rainfall. but not any kind of flooding rains r us. it will also provide a reinforcing shot of colder air as we head throughout friday and saturday's forecast. overall this will mean for us at the coastline 40s and 50s. and for interior valleys, just 50s and 60s. so rain arrives thursday. then as we head throughout friday, even a chance of some

thunderstorms. with so much cold air aloft, maybe even getting a little bit of hail. the rain starts to arrive at 10:00 a.m. and starts to push south by the early afternoon. it will be more of the scattered variety of rain. but we do even expect rain as far south as san jose. and that rain is going to continue into thursday's forecast as well. overall snow totals about 4 to 10 inches, as we mentioned. near the summit, we may even get a little more at kingville, with about 15 inches at this point. and anyone headed up to the sierra, also be forewarned. winds could go as high as 90 miles per hour, blinding even blizzard conditions expected throughout thursday and friday. daytime highs expected to top out in the mid- to upper 50s for thursday. so find those jackets. i know it may be hard to dig through the closet, but you're going to need them in the next couple days. the nor'easter slamming the northeast as we heard earlier in the show. temperatures in the 20s and 30s, and some of the largest impacts will be the high winds, which could produce more power outages. snow ranging anywhere from 1 to 5 inches, and also isolated

flooding and coastal erosion expected. and some of the same hard-hit areas from hurricane sandy, including new york city, staten island, and also the northern new jersey coastline. there is no good path for the storm system. it is very unfortunate. then as we head throughout saturday, we'll start to see the showers clear out. and throughout sunday, we get some sunshine and a some mid-60s. so sunday is the best day of your weekend so far coming your way. >> we'll take it. thank you, jeff. still ahead, it was an upgrade they didn't ask for. the cell phone carrier now paying some customers for its mistake. and another victory. how president obama made history last night. stay with us.

an arrest in the burglary at the napa county home of congresswoman nancy pelosi. police arrested kevin hagan. here is his mug shot. the 21-year-old admitted to burglarizing six properties in napa since halloween. police responded to an alarm at pelosi's house monday afternoon. they found the front door smashed in. it's not clear if anything was taken. now pelosi won reelection as you

might know to her 13th full term in congress just last night. she is likely to be named minority leader in the house once again. however, some congressional insiders say she may not want the job. we have some good news for you. some at&t customers who are forced into monthly data plans are going to get a refund. at&t has agreed to pay the federal government $700,000 and offer refunds of up to $30 a month for certain customers. in late 2009, the company began requiring phone users to subscribe to monthly data plans be. ah computer glitch assigned that plan to customers who had replaced a lost or broken phone through an insurance program or warranty without their consent. and we'll be right back. [ female announcer ] welcome, one and all, to a tastier festive feast. so much to sip and savor. a feeding frenzy, to say the least. a turkey from safeway will have everyone raving.

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move over, justin bieber, here comes president obama. mr. obama is now the most

retweeted person of all time. his victory tweet last night, you might have seen it, or maybe you retweeted it, featured a picture of him and michelle obama, there it is, hugging. great embrace. it has been retweeted more than 760,000 times. that's more than the previous record holder, justin bieber. let's talk about your tweets, jeff. what would you tweet about our forecast? >> low snow. >> low or no? >> low. >> you have 130 more characters. >> i got so much more to say but only about ten seconds here. we're expecting the rain to return for tomorrow morning. also a chance of thunderstorms friday. lingering showers saturday and much cold were 50s and 60s. well may even get a few snowflakes at mount hamilton the next couple of days. >> "nbc nightly news" is next, a special edition. good night.